A bank account is labeled dormant when there has been no activity initiated by the account holder for ten consecutive years.
This applies to savings accounts, current accounts, and even matured fixed deposits.
Once an account is marked dormant:
It moves to the bank’s inactive ledger.
It may stop earning interest.
You cannot use it for withdrawals or online transactions.
As per RBI guidelines, banks must contact customers before marking an account inactive.
How to Reactivate a Dormant Account
To reactivate a dormant account, you need to update your KYC (Know Your Customer) details.
Steps to follow:
Visit your home branch with your Aadhaar, PAN, recent passport-size photo, and updated address proof.
The bank will verify your identity and update its records.
You may need to make a small deposit or withdrawal to show fresh activity.
After this, the account is usually reactivated within a few days.
Charges and Possible Delays
The RBI prohibits banks from charging a fee for dormant accounts, but some charges may appear after reactivation, such as:
SMS alert fees
Minimum balance penalties
Cheque book charges
Reactivation can sometimes take up to two weeks, especially if:
Your KYC or signature is outdated
Your mobile number or email ID is old
The account balance has been transferred to RBI’s Depositor Education and Awareness Fund (DEAF)
What If Your Money Is Already With the RBI?
Even if your funds have moved to the RBI’s DEAF fund, you can reclaim them.
First, reactivate your account.
The bank will file a claim on your behalf.
After verification of documents and account details, the money is refunded.
This process may take longer because RBI verifies identity, signatures, and old account records carefully.
